How to stop a garnishment of taxes from a collection agency?

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How to stop a garnishment of taxes from a collection agency?

I entered into a loan and purchased a used vehicle in 2008 from a dealership. I defaulted in 03/09 due to unexpected 2nd spinal surgery in which the vehicle was under repossession. The vehicle never was found. Summons to appear in court 02/10 and was allowed by the loan agency to continue regular monthly payments starting 03/10. I make regular monthly payments to the debt collection company for the loan agency. I received a “Writ for Garnishment” for taxes (income tax refund/credit). I went to court and picked up an “Objection to Garnishment. Can you advise?

Asked on November 11, 2010 under Bankruptcy Law, Michigan

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

The State of Michigan has done a tremendous job in placing on their website the information and forms necessary in order to deal with garnishment from both a creditor and a debtor perspective.  As for the objection that you picked up, you have to give a good reason as to why you are objecting.  Here are those that have been listed:

  • the funds or property are exempt from garnishment by law
  • garnishment is precluded by the pendency of bankruptcy proceedings
  • garnishment is barred by an installment payment order
  • garnishment is precluded because the maximum amount permitted by law is being withheld pursuant to a higher priority garnishment or order
  • the judgment has been paid
  • the garnishment was not properly issued or is otherwise invalid
  • Go to www.courts.michigan.gov and look through the self help garnishment portion of the site.  Good luck.


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